Oil prices rose by more than 2% after new strikes on Saudi Arabia

World oil prices rose by more than 2% after new strikes on Saudi Arabia’s energy and civilian infrastructure. Further concerns about supplies were triggered by Iranian attacks on vessels in the Persian Gulf and the temporary closure of a key Saudi oil pipeline. Reuters reports, as cited by UNN.

Details

According to the publication, as of 06:30 GMT, Brent crude futures had risen by $2.11, or 2.02%, to $106.72 per barrel. The price of WTI futures increased by $2.10, or 2.1%, to $102.15 per barrel.

This came after attacks on Saudi Arabia’s energy infrastructure intensified, in particular on the critical East-West pipeline

At the same time, analysts noted that it was still unclear how serious the damage might be and how long the pipeline would remain out of operation.

According to Saudi officials, Saudi Arabia’s East-West oil pipeline was temporarily shut down following a drone attack . The closure of the pipeline, which helps Saudi Arabia avoid the Strait of Hormuz and redirect its exports, threatens up to 4% of global oil supplies

According to sources familiar with Saudi Arabia’s exports, due to the pipeline being taken out of service, Yanbu’s stocks are sufficient to cover only five to seven days of exports.

Reminder

Tehran will propose a temporary maritime route through the Strait of Hormuz without fully opening it. The plan will be discussed in Salalah; an agreement will not be signed immediately.